This sharp decline sits alongside a modest 2% dip in turnover – down to £277.6m from £283.4m – reflecting what chairman Brian Gilda described as “one of the most challenging periods for the UK retail motor industry in recent memory”.

The company attributes the downturn to a combination of supply constraints, high interest rates, and cost-of-living pressures, all of which have squeezed margins and driven up operating costs.

Despite these financial headwinds, the business maintains it is resilient, largely due to a major strategic shift enacted last year. Ending a 42-year legacy of Ford exclusivity, Peoples Limited has diversified its portfolio by introducing Chinese OEMs BYD, Omoda/Jaecoo, and Maxus.

“We made the decision to broaden our offering to the marketplace at the right time, reducing our dependence on any one single OEM,” said Mr Gilda. He noted that despite the pressure on pricing, the move ensured the company could protect its six dealerships and retain its skilled workforce.

Early performance for the new brands – which include a mix of BEVs, PHEVs, and commercial vehicles – has been strong. Mr Gilda described the new inventory as “flying”, noting that they are currently outperforming some established European competitors.

However, the group remains cautious regarding the medium term. Mr Gilda expressed disappointment with the recent Budget, citing concerns that new electric vehicle excise duties and pay-per-mile costs could stall EV adoption. Nevertheless, the company points to encouraging growth in its aftersales department, where margins remain robust, as a key driver for future stability.